WSJ story on CDMA iPhone captures attention of Wall Street traders
Another big winner would be Apple itself. While limiting itself to AT&T's network since the launch of the phone, Apple has had to spend time defending AT&T's spotty coverage and dropped calls. By expanding its sales channels to other carrier's, it can only lead to more iPhones in people's hands. And even those who now own the device will have to buy a CDMA model if they want to switch to Verizon. Apple's stock made an all-time high at 237.48 before closing up 1.5% at 235.85. Besides Verizon, Sprint is another CDMA carrier that could benefit from the new model. Sprint shares rose to 3.82 for a gain of 3 cents. Chip maker Qualcomm could make more money from a CDMA iPhone and from another rumored model mentioned in the WSJ article that would use a faster processor. Qualcomm's 1GHz Snapdragon processor has been the chip of choice for newer, high powered cellphones. The stock gained .9% to 42.13.
The one big loser in the scenario? AT&T. Yes, losing some customers might take some of the pressure off its overworked pipelines. But AT&T used its exclusive period with the iPhone to make a strong association with the phone. When you thought of the iPhone, you thought of AT&T, which lost 2.11% to 25.95. Without the exclusive iPhone deal, AT&T will have to challenge Verizon and the other carriers through its network and its cellphone lineup. In both of those departments, AT&T comes up short against Big Red and some of the other carriers.